Which of the Following Is TRUE About Price Discrimination in Monopolistic

question 53

Multiple Choice

Which of the following is TRUE about price discrimination in monopolistic markets? I. Price discrimination may be good if it leads to higher output. II. Price discrimination may help to offset high fixed costs, but leads to less research and innovation. III. Single-pricing tends to increase prices for at least a subset of the market.

• A) I only
• B) II and III only
• C) I and III only
• D) I and II only

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Definitions:

George C. Marshall

An American military leader and statesman known for his leadership during World War II and for the post-war European recovery plan that bears his name, the Marshall Plan.

American Public

Refers to the general population of the United States or their collective attitudes and opinions.

Atomic Bomb

A weapon of mass destruction that utilizes nuclear reactions, specifically fission or a combination of fission and fusion, to release a large amount of energy.

Harry S. Truman

The 33rd President of the United States (1945-1953), known for implementing the Marshall Plan, leading the Cold War's initial stages, and making the decision to use atomic bombs against Japan in WWII.